Aid for Trade: An essential component of the multilateral trading system and WTO Doha development agenda

The paper argues that increased Trade and Aid are both essential to enhance the development of many developing countries. It argues further that trade-related technical assistance and capacity building is not only an essential element of the concept of special and differential treatment but is also a core element of the development dimension of the multilateral trading system. The paper provides an overview of the history of the GATT/WTO with a specific focus on capacity building and the developments in 2005 and 2006 that have contributed to the momentum for increased Aid for Trade. The issue of additionality of overall ODA and Aid for Trade is considered and the broad trends in the trajectory of ODA and Aid for Trade are assessed. In the conclusion, three reasons are discussed for developed countries to consider increasing their overall Aid commitments and additional Aid for Trade as a contribution to the successful conclusion of the Doha Round.